'Govt's nod to refund claims to provide relief to exporters'

New Delhi: The Cabinet's approval for refund of Rs 2,700-crore claims to exporters will provide them relief and help boost shipments, FIEO today said.

Hailing the approval of implementation of Supreme Court's judgement regarding Target Plus Scheme (TPS), Federation of Indian Export Organisations (FIEO) said exporters were fighting for their legitimate benefit for a long time.

"This is an encouraging decision of the government which will provide relief to exporters in their export efforts," FIEO President Ganesh Gupta said in a statement.

The Cabinet yesterday approved a proposal for refund of Rs 2,700-crore claims to exporters under an export promotion initiative 'TPS' in pursuance of a Supreme Court judgement.

He said that the TPS was introduced in 2004-2009 Foreign Trade Policy and the scheme provided for duty credit of 5 percent, 10 percent or 15 percent for exporters who achieved a quantum growth in exports.

The scope of benefit under the scheme was narrowed after it was implemented and affected exporters were compelled to approach Supreme Court arguing that the new provisions could not be applied retrospectively, he added.